The U.S. central bank is monitoring the declining value of the dollar closely as part of its commitment to both jobs growth and price stability, said Federal Reserve Chairman Ben Bernanke on Monday. Art Cashin, director of floor operations at UBS Financial Services, shared his insights on the Fed and the markets.

âNot only did Bernanke come out and say no bubble, but last night, [Fed Vice Chairman Donald] Kohn came out and aggressively said no bubbleâin fact, part of our policy is to get people to move into riskier assets,â Cashin told CNBC.

âAnd [Federal Reserve Bank of San Francisco President Janet] Yellen came out this morning and said no bubble. So you almost get a contrary sense when everybody on the Fed is saying thereâs no bubble hereâdonât worry about our policy.â

He said former Fed chairman Alan Greenspan once helped cause a previous bubble by holding rates low. Cashin fears a similar situation happening with the current Fed holding the rates low again.

âAnd it looks like weâre having some more bubbles beginning to inflate here,â he said. âSo [the Fed] felt like they had to come out and deny it.â